A1116
Title: Leveraging innovation for improved service productivity: Insights from endogenous stochastic frontier analysis
Authors: Fikru Kefyalew Alemayehu - Inland Norway University of Applied Sciences (Norway) [presenting]
Subal Kumbhakar - State University of New York at Binghamton (United States)
Kai Sun - Shanghai University (China)
Abstract: In recent years, there has been a surge of interest in the relationship between innovation, service productivity, and efficiency. Despite increased research attention, this relationship is still poorly understood. To address this issue, a recent instrumental variable approach of Endogenous Stochastic Frontier Analysis is utilized within a semi-parametric framework based on data from the Community Innovation Survey of Norwegian firms from 2002 to 2016. This method is essential for dealing with the issue using variables such as R\&D spending and collaboration as instruments for innovation. The findings show a significant positive relationship between service productivity and innovation. Overall, the aim is to bridge the gap in this research area by providing useful insights into the role of innovation in service productivity.
